Why Tesla Sued the Swedish Transportation Agency and Postal Service
Tesla has sued the Swedish Transport Agency and postal service after a strike halted the delivery of license plates.
Tesla has filed lawsuits against both the Swedish Transport Agency and PostNord, Sweden’s provider of postal services, for a strike blocking the delivery of license plates for new Tesla vehicles, according to The Associated Press (AP).
The strike is specifically targeting Tesla, with postal workers joining in solidarity with mechanics, who are fighting to have a union recognized.
In the lawsuit filed against the transportation agency Monday, Tesla argued the agency has a “constitutional obligation to provide registration plates to vehicle owners” and that the postal service’s action “cannot be described in any other way than as a unique attack on a company operating in Sweden,” according to CNBC. Tesla filed a separate lawsuit against the postal service, according to Bloomberg.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Tesla received a quick response from the Norrköping District Court and was issued a temporary injunction granting it the right to take delivery of the license plates that were being withheld from it.
The transportation agency must arrange delivery of the license plates within seven days or it will face a fine of one million Swedish kronor, which is equivalent to about $96,000, per Bloomberg, and the agency confirmed it received the court’s decision and was prepared to deliver the plates to Tesla.
“The agency now needs to look into the decision and what consequences it might have for us and what we have to take into account to execute the decision,” Anna Berggrund, director of the Swedish Transportation Agency's Department of Vehicle Information, told Bloomberg in a statement. “It is too early to say what that would mean in further detail."
Kiplinger has reached out to PostNord for comment.
What led to Tesla suing in Sweden?
IF Metall, a trade union with over 300,000 members, has been on strike since October 27 at service centers and workshops after Tesla declined to sign a collective bargaining agreement that sought to bring “good wages, pensions and insurance for all Tesla employees.” IF Metall says that Tesla’s refusal to sign a collective bargaining agreement forced the strike.
Other trade unions, including dockworkers at Sweden’s four largest ports, 53 painting companies and postal workers, joined the strike in solidarity, the AP said.
“This is insane,” Elon Musk posted on X.com, formerly Twitter, on November 23 in response to a public post about PostNord’s refusal to deliver license plates for new Tesla vehicles.
The Tesla Model Y is the top-selling vehicle in Sweden so far in 2023, with 14,078 registrations to-date, according to Mobility Sweden.
Related Content
Get Kiplinger Today newsletter — free
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.
Joey Solitro is a freelance financial journalist at Kiplinger with more than a decade of experience. A longtime equity analyst, Joey has covered a range of industries for media outlets including The Motley Fool, Seeking Alpha, Market Realist, and TipRanks. Joey holds a bachelor's degree in business administration.
-
Oracle Stock Is Sinking After Earnings. Here's Why
Oracle stock is lower Tuesday after the tech giant fell short of earnings expectations for its fiscal second quarter. This is what you need to know.
By Joey Solitro Published
-
Can Tariffs Make Childcare Affordable?
Tariffs President-elect Trump suggested tariffs can address the childcare crisis, but economists are doubtful.
By Gabriella Cruz-Martínez Published
-
Smart Ways to Invest Your Money This Year
Following a red-hot run for the equities market, folks are looking for smart ways to invest this year. Stocks, bonds and CDs all have something to offer in 2024.
By Jeff Reeves Published
-
Stock Market Predictions for 2024: Tesla, Apple and Rate Cuts
Nothing is ever certain, but top stock market predictions for 2024 include lower inflation, higher energy prices and an AI-related boost to GDP growth.
By Louis Navellier Published
-
7 Tesla (TSLA) Risks That Investors Can’t Ignore
Investor Psychology Give credit where it’s due.
By James Brumley Published
-
U.S. Energy Policy: Is Uncle Sam Green Enough?
Politics Despite earmarking $100 billion for renewable energy, our government has drawn criticism for not being tough enough on environmental issues.
By Bob Frick Published